Question 1

Which of the following countries has an individualistic orientation?

Accepted Answer

A) Venezuela 
B) Japan 
C) Egypt 
D) Canada 
A) Venezuela 
B) Japan 
C) Egypt 
D) Canada

Question 2

Countries with a ________ legal system tend to encourage precise, detailed contracts, whereas countries with a ________ legal system tend to encourage shorter and less specific contracts.

Accepted Answer

A) theocratic; mixed 
B) common; civil 
C) civil; customary 
D) customary; common 
A) theocratic; mixed 
B) common; civil 
C) civil; customary 
D) customary; common

Question 3

Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?

Accepted Answer

A) Totalitarian regimes delivered acceptable economic progress to their populations. 
B) Economic advances caused contentment among the working class and minimized the need to push for democratic reforms. 
C) Many groups were able to successfully challenge the legitimacy of democratic systems. 
D) Information and communications technologies broke down the ability of the state to control access to uncensored information, especially that from foreign sources. 
A) Totalitarian regimes delivered acceptable economic progress to their populations. 
B) Economic advances caused contentment among the working class and minimized the need to push for democratic reforms. 
C) Many groups were able to successfully challenge the legitimacy of democratic systems. 
D) Information and communications technologies broke down the ability of the state to control access to uncensored information, especially that from foreign sources.

Question 4

Logan Electronics has a production facility in Bolivia.Recently, the firm was taxed at a significantly higher rate than a local electronics company.Which type of political risk is Logan most likely experiencing?

Accepted Answer

A) systemic 
B) procedural 
C) distributive 
D) catastrophic 
A) systemic 
B) procedural 
C) distributive 
D) catastrophic

Question 5

In a brief essay, describe the political and legal systems in China and their effect on MNEs doing business in China.

Accepted Answer

China applies state capitalism whereby t

Question 6

Which of the following ideas holds that a government should NOT interfere in business affairs?

Accepted Answer

A) collectivism 
B) laissez-faire 
C) the rule of man 
D) pluralism 
A) collectivism 
B) laissez-faire 
C) the rule of man 
D) pluralism

Question 7

The ________ of a country specifies the rules that regulate behavior, the processes by which laws are enforced, and the procedures used to resolve grievances.

Accepted Answer

A) political system 
B) political philosophy 
C) philosophical orientation 
D) legal system 
A) political system 
B) political philosophy 
C) philosophical orientation 
D) legal system

Question 8

Which of the following countries has a collectivist orientation?

Accepted Answer

A) Canada 
B) Australia 
C) Japan 
D) Netherlands 
A) Canada 
B) Australia 
C) Japan 
D) Netherlands

Question 9

Totalitarian countries are favored by MNEs because state governments typically favor foreign investors over local companies.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is NOT a component of modern legal systems?

Accepted Answer

A) constitutional law 
B) criminal law 
C) commercial law 
D) private law 
A) constitutional law 
B) criminal law 
C) commercial law 
D) private law

Question 11

International companies often must customize products to comply with local standards if they are to do business in a particular country.

Accepted Answer

A) True 
 B)False

Question 12

In a country that emphasizes collectivism, ________.

Accepted Answer

A) the interests of the individual are more important than the interests of the state 
B) one person or political party exercises absolute control over the political and economic systems 
C) the needs of society and the needs of individuals are treated as equally important 
D) the needs of society take precedence over individual freedoms 
A) the interests of the individual are more important than the interests of the state 
B) one person or political party exercises absolute control over the political and economic systems 
C) the needs of society and the needs of individuals are treated as equally important 
D) the needs of society take precedence over individual freedoms

Question 13

Most counterfeit goods are made in markets in which ________ is the basis of the legal system.

Accepted Answer

A) the rule of man 
B) the rule of law 
C) religious doctrine 
D) corporate precedent 
A) the rule of man 
B) the rule of law 
C) religious doctrine 
D) corporate precedent

Question 14

Barkely Enterprises, a U.S.manufacturer, received assistance from the Overseas Private Investment Corporation when it expanded operations into Saudi Arabia.Which of the following types of support did Barkely most likely receive from OPIC?

Accepted Answer

A) financial capital 
B) cultural training 
C) legal guidance 
D) political risk insurance 
A) financial capital 
B) cultural training 
C) legal guidance 
D) political risk insurance

Question 15

Select the correct order, going from low to high total impact on an MNE, of the following types of political risk: (1)procedural political risks, (2)systemic political risks, (3)distributive political risks, (4)catastrophic political risks.

Accepted Answer

A) 3, 2, 1, 4 
B) 1, 2, 3, 4 
C) 2, 3, 4, 1 
D) 2, 1, 3, 4 
A) 3, 2, 1, 4 
B) 1, 2, 3, 4 
C) 2, 3, 4, 1 
D) 2, 1, 3, 4

Question 16

The rule of man, a practice that has been in play for millennia, presumes that the law is the will of the ruler, whether the king, czar, raj, or emperor.

Accepted Answer

A) True 
 B)False

Question 17

How does a nation's legal environment affect an MNE's marketplace behavior, especially when the rule of man prevails?

Accepted Answer

National laws stipulate permissible prac

Question 18

________ refers to a political system in which government is organized by and accountable to the people.

Accepted Answer

A) Totalitarianism 
B) Fascism 
C) Socialism 
D) Democracy 
A) Totalitarianism 
B) Fascism 
C) Socialism 
D) Democracy

Question 19

The march toward greater political freedoms and more expansive civil liberties, beginning in the 1970s, strongly fueled a sense of ________.

Accepted Answer

A) less predictable operating conditions for companies 
B) the inevitability of democracy 
C) different rules for domestic versus international competition 
D) weaker property rights 
A) less predictable operating conditions for companies 
B) the inevitability of democracy 
C) different rules for domestic versus international competition 
D) weaker property rights

Question 20

Multilateral development banks encourage development in risky environments through financial incentives.

Accepted Answer

A) True 
 B)False

Which of the following countries has an individualistic orientation?

Countries with a legal system tend to encourage precise, detailed contracts, whereas countries with a legal system tend to encourage shorter and less specific contracts.

Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?

Logan Electronics has a production facility in Bolivia.Recently, the firm was taxed at a significantly higher rate than a local electronics company.Which type of political risk is Logan most likely experiencing?

In a brief essay, describe the political and legal systems in China and their effect on MNEs doing business in China.

Which of the following ideas holds that a government should NOT interfere in business affairs?

The ________ of a country specifies the rules that regulate behavior, the processes by which laws are enforced, and the procedures used to resolve grievances.

Which of the following countries has a collectivist orientation?

Totalitarian countries are favored by MNEs because state governments typically favor foreign investors over local companies.

Which of the following is NOT a component of modern legal systems?

International companies often must customize products to comply with local standards if they are to do business in a particular country.

In a country that emphasizes collectivism, ________.

Most counterfeit goods are made in markets in which ________ is the basis of the legal system.

Barkely Enterprises, a U.S.manufacturer, received assistance from the Overseas Private Investment Corporation when it expanded operations into Saudi Arabia.Which of the following types of support did Barkely most likely receive from OPIC?

Select the correct order, going from low to high total impact on an MNE, of the following types of political risk: (1)procedural political risks, (2)systemic political risks, (3)distributive political risks, (4)catastrophic political risks.

The rule of man, a practice that has been in play for millennia, presumes that the law is the will of the ruler, whether the king, czar, raj, or emperor.

How does a nation's legal environment affect an MNE's marketplace behavior, especially when the rule of man prevails?

________ refers to a political system in which government is organized by and accountable to the people.

The march toward greater political freedoms and more expansive civil liberties, beginning in the 1970s, strongly fueled a sense of ________.

Multilateral development banks encourage development in risky environments through financial incentives.

Globalization and International Business

The Cultural Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 3: The Political and Legal Environments Facing Business

Which of the following countries has an individualistic orientation?

Countries with a ________ legal system tend to encourage precise, detailed contracts, whereas countries with a ________ legal system tend to encourage shorter and less specific contracts.

Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?

Logan Electronics has a production facility in Bolivia.Recently, the firm was taxed at a significantly higher rate than a local electronics company.Which type of political risk is Logan most likely experiencing?

In a brief essay, describe the political and legal systems in China and their effect on MNEs doing business in China.

Which of the following ideas holds that a government should NOT interfere in business affairs?

The ________ of a country specifies the rules that regulate behavior, the processes by which laws are enforced, and the procedures used to resolve grievances.

Which of the following countries has a collectivist orientation?

Totalitarian countries are favored by MNEs because state governments typically favor foreign investors over local companies.

Which of the following is NOT a component of modern legal systems?

International companies often must customize products to comply with local standards if they are to do business in a particular country.

In a country that emphasizes collectivism, ________.

Most counterfeit goods are made in markets in which ________ is the basis of the legal system.

Barkely Enterprises, a U.S.manufacturer, received assistance from the Overseas Private Investment Corporation when it expanded operations into Saudi Arabia.Which of the following types of support did Barkely most likely receive from OPIC?

Select the correct order, going from low to high total impact on an MNE, of the following types of political risk: (1)procedural political risks, (2)systemic political risks, (3)distributive political risks, (4)catastrophic political risks.

The rule of man, a practice that has been in play for millennia, presumes that the law is the will of the ruler, whether the king, czar, raj, or emperor.

How does a nation's legal environment affect an MNE's marketplace behavior, especially when the rule of man prevails?

________ refers to a political system in which government is organized by and accountable to the people.

The march toward greater political freedoms and more expansive civil liberties, beginning in the 1970s, strongly fueled a sense of ________.

Multilateral development banks encourage development in risky environments through financial incentives.

Globalization and International Business

The Cultural Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Countries with a legal system tend to encourage precise, detailed contracts, whereas countries with a legal system tend to encourage shorter and less specific contracts.